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GDF Suez (OTCPK:GDFZY)
Gross Profit
$51,886 Mil (TTM As of Jun. 2014)

GDF Suez's gross profit for the six months ended in Jun. 2014 was $20,589 Mil. GDF Suez's gross profit for the trailing twelve months (TTM) ended in Jun. 2014 was $51,886 Mil.

Gross Margin is calculated as gross profit divided by its revenue. GDF Suez's gross profit for the six months ended in Jun. 2014 was $20,589 Mil. GDF Suez's revenue for the six months ended in Jun. 2014 was $53,336 Mil. Therefore, GDF Suez's Gross Margin for the quarter that ended in Jun. 2014 was 38.60%.

GDF Suez had a gross margin of 38.60% for the quarter that ended in Jun. 2014 => Competition eroding margins

During the past 12 years, the highest Gross Margin of GDF Suez was 55.16%. The lowest was 28.76%. And the median was 46.68%.

Warning Sign:

GDF Suez gross margin has been in long term decline. The average rate of decline per year is -1.7%.


Definition

Gross Profit is the different between the sale prices and the cost of buying or producing the goods.

GDF Suez's Gross Profit for the fiscal year that ended in Dec. 2013 is calculated as

Gross Profit (A: Dec. 2013 )=Revenue - Cost of Goods Sold
=121662.125341 - 69776.5667575
=51,886

GDF Suez's Gross Profit for the quarter that ended in Jun. 2014 is calculated as

Gross Profit (Q: Jun. 2014 )=Revenue - Cost of Goods Sold
=53335.5886333 - 32746.9553451
=20,589

For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. GDF Suez Gross Profit for the trailing twelve months (TTM) ended in Jun. 2014 was $51,886 Mil.

Gross Profit is the numerator in the calculation of Gross Margin:

GDF Suez's Gross Margin for the quarter that ended in Jun. 2014 is calculated as

Gross Margin (Q: Jun. 2014 )=Gross Profit (Q: Jun. 2014 ) / Revenue (Q: Jun. 2014 )
=(Revenue - Cost of Goods Sold) / Revenue
=20,589 / 53335.5886333
=38.60 %

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

GDF Suez had a gross margin of 38.60% for the quarter that ended in Jun. 2014 => Competition eroding margins


Related Terms

Cost of Goods Sold, Gross Margin, Revenue


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

GDF Suez Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
Gross_Profit 8,5687,98330,23338,56642,44354,92453,21756,74659,65651,886

GDF Suez Semi-Annual Data

Dec09Jun10Dec10Jun11Dec11Jun12Dec12Jun13Dec13Jun14
Gross_Profit 26,47225,53826,55231,63428,17328,24229,08528,65322,06120,589
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